Ripple and Ethereum are well-known cryptocurrencies that people often choose for mining. Both these cryptocurrencies are similar to one another but with some differences. Ripple is one of the most popular cryptocurrencies that gives real-time power payments to customers all over the globe.
Ethereum was introduced in the year 2013. It was put into use by Vitalik Buterin in the year 2015. In this blog, we will discuss both these cryptocurrencies in detail. We will also discuss the difference between Ripple and Ethereum by considering the best factors.
What is Ripple (XRP)?
Ripple is a common term used for both the payment network RippleNet and the virtual currency Ripple XRP. It came into existence in the year 2012 and has a current market capitalization of around $22 billion.
What is Ethereum (ETH)?
Ethereum is an open-source network for decentralized applications. It works on blockchain structure just like other cryptocurrencies but includes some unique features such as smart contracts.
Difference Between Ripple and Ethereum
Both these cryptocurrencies have many differences. Let us consider each factor to look at the major differences between these cryptocurrencies:
The first point to look at in the difference is supply. The total number of Ripple coins available is 100 billion XRP. Those in circulation are 46,878,114,887 at present. Contrary to that, the supply of Ethereum is limited with a circulation of about 117,934,043.12 ETH.
Ethereum coins are fewer than Ripple coins in the market. As it is not possible to mine XRP coins, the remaining Ripple coins are controlled by the company. About 55 billion XRP coins are kept in encrypted accounts to make it simple for users to track the maximum amount of XRP coins in circulation.
2. Consensus Mechanism
While finalizing the transaction in the blockchain, some nodes must agree that everything is valid. When these nodes reach an agreement, the process is called consensus.
Ripple XRP works on a mechanism known as Federated Byzantine Agreement (BFA). This mechanism is different from the Proof-of-work mechanism. Ripple works on “transaction validators”. A transaction validator is only the banks that use Ripple technology. Ripple Consensus Algorithm is very speedy and achieves 1,500 transactions every second.
Ethereum works on a Proof-of-work mechanism. It is like a puzzle and cannot scale a lot of transactions. This network can scale only 15 transactions every second. The developers of Ethereum are now moving to a Proof-of-stake mechanism with the help of Casper Protocol.
3. Market Performance
Now, let us discuss the market capitalization of both cryptocurrencies. Ethereum is the 2nd cryptocurrency in the world in terms of market performance. On the other hand, Ripple (XRP) is the 6th cryptocurrency in the globe in terms of market capitalization.
The ripple and trading volume of Ripple is lower than Ethereum. The rate of XRP is $0.85 and the trading volume is $4,712,660,117. On the other hand, the rate of Ethereum is $3,795 and the trading volume is $442,516,853,931. It is better to invest in Ethereum by looking at the current figures.
4. Main Point
The next thing we will see is the focal point of both cryptocurrencies. The focal point of Ripple is to make real-time global payments anywhere in the globe without the usual friction of exchange rates. Ripple mining is done to make global payment modern in today’s time.
Ethereum mining aims to increase the use of blockchain technology all over the globe with the help of smart contracts. It enables decentralized applications to run without any fraud or third-party interference.
Ripple mining hardware helps to reduce the slow transaction time between various global companies. The network of Ripple payments can process 10,000 or more transactions every second. The ripple network is 1,000 times faster than Bitcoin transactions.
On the other hand, the network of Ethereum is slower than the Ripple network by around 670 times. An Ethereum network can process only 15 transactions per second. It means the exchange rates of Ethereum are higher than Ripple and other cryptocurrencies. Besides, it is also energy efficient to use Ethereum network.
With the introduction of Ethereum 2.0, Ethereum technology will shift to an upgraded platform. Eth2 mining machine will process more transactions than the old network. It is also energy efficient and consumes less power.
It is better to invest in Ethereum at present because of its great speed and 22.65 kWh of energy. The demand for Ethereum mining hardware will increase in the coming years after the launch of the Eth2 network.
The next point to determine is the transaction fees. In Ripple mining, there are no transaction fees. It means you do not have to pay any commission or brokerage to the agents while mining Ripple (XRP).
On the other hand, the transaction fees in Ethereum mining machine are higher than in Ripple mining. It means it is profitable to start Ripple mining by choosing the best Ripple Mining machine. Ripple mining has lower transaction fees than the Ethereum mining option.
7. Block Rewards
The last point to consider in mining is block reward. In the case of Ripple mining, you will not receive any rewards as XRP is pre-mined. On the other hand, mining Ethereum on an Ethereum miner will give 2 Ethers.
You can get the Ethereum Crypto mining software, mining pool,and hardwareand to start mining right at your home or office. It will give 2 Ethers by mining every block. You will easily find a good Ethereum Cryptocurrency mining machine online to start mining cryptocurrency at home.
Check Out: Difference Between Ripple and Bitcoin
We discussed various factors related to Ethereum and Ripple mining in this blog. Both cryptocurrencies are safe to invest your money in. You can either start mining on your own or join a mining pool to start mining Ripple or Ethereum coins.
It depends on the choice of individuals when it comes to mining Ripple and Ethereum. You can buy a good ASIC mining machine to start mining of Ripple or Ethereum cryptocurrencies on your own.
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